If a client instructs their agent not to disclose a defect in the property, what must the agent do?

Study for the New York Real Estate Institute (NYREI) Exam. Get ahead with flashcards and multiple choice questions, each accompanied by hints and explanations. Equip yourself with the knowledge to pass your exam confidently!

The agent is obligated to disclose any defects in the property to interested buyers regardless of the client's instruction. This is rooted in the agent's duty to promote transparency and protect potential buyers from purchasing a property with undisclosed issues that could affect its value or livability.

Real estate agents must adhere to ethical guidelines and legal requirements that prioritize the welfare of all parties involved, particularly the buyer who may not have the same knowledge about the property. By disclosing known defects, agents not only fulfill their obligations under real estate laws but also maintain professionalism and integrity in their practice. Failing to disclose such information could lead to legal implications for both the agent and the seller, potentially resulting in litigation for misrepresentation.

Hence, it is essential for the agent to act in good faith and ensure that all material facts about the property are disclosed, even if that means not following the client’s instruction to keep the defect confidential. This focus on transparency is crucial in fostering trust within the real estate transaction process.

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